Key Highlights
- AUD/USD started a steady increase above 0.7300.
- A key bullish trend line is forming with support near 0.7290 on the 4-hours chart.
- EUR/USD corrected higher above 1.0950, and GBP/USD consolidated near 1.3100.
- The US Consumer Price Index could jump 7.9% in Feb 2022 (YoY).
AUD/USD Technical Analysis
The Aussie Dollar remained well bid above 0.7200 against the US Dollar. AUD/USD climbed higher when majors like EUR/USD and GBP/USD declined heavily.
Looking at the 4-hours chart, the pair even surged above the 0.7400 level. It formed a high near 0.7440 and settled above the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
Recently, there was a downside correction below the 0.7350 support. However, the pair found support near 0.7250 and stayed above the 100 simple moving average (red, 4-hours).
It is now recovering and trading above 0.7300. To continue higher, the pair must settle above the 0.7350 resistance. The next major resistance might be 0.7395 or 0.7400. It is near the 76.4% Fib retracement level of the recent decline from the 0.7440 high to 0.7246 low.
Any more gains might call for a new high above 0.7440. If not, the pair might start another decline below 0.7300. There is also a key bullish trend line forming with support near 0.7290 on the same chart.
A downside break below the trend line could push the pair towards 0.7250. The next major support sits near the 0.7165 level.
Looking at EUR/USD, the pair started an upside correction from 1.0800. Similarly, GBP/USD is slowly recovering above 1.3100.
Economic Releases
- ECB Interest Rate Decision – Forecast 0%, versus 0% previous.
- US Consumer Price Index for Feb 2022 (MoM) – Forecast +0.8%, versus +0.6% previous.
- US Consumer Price Index for Feb 2022 (YoY) – Forecast +7.9%, versus +7.5% previous.
- US Consumer Price Index Ex Food & Energy for Feb 2022 (YoY) – Forecast +6.4%, versus +6.0% previous.
